Correct Answer: Both Assertion and Reason are true, and Reason is the correct explanation of Assertion.

Solution : The correct answer is (a) Both Assertion and Reason are true, and Reason is the correct explanation of Assertion.

The assertion is true. Financial incentives can indeed fulfill physiological needs by providing employees with the means to secure basic necessities like food, shelter, and healthcare. Additionally, financial incentives can fulfill esteem needs by providing recognition and validation of an employee's contributions and accomplishments in the workplace.

The reason is true and is the correct explanation for the assertion. Financial incentives can provide job security in the sense that they offer a stable income, and they also provide recognition through rewards, bonuses, promotions, or other forms of acknowledgment for an employee's efforts and performance. These aspects address different levels of needs, including physiological and esteem needs, as they contribute to both financial security and a sense of recognition and worth in the workplace.